NEW YORK (GenomeWeb) – Urological cancer diagnostics firm MDxHealth announced today that it expects to fall short of its previous guidance for 2017 revenue growth based on preliminary fourth quarter results.
It now expects to see 10 percent to 15 percent growth in its product-and-services revenues due to "timing issues in obtaining billable cases from contracted customers" for its ConfirmMDx epigenetics-based prostate cancer test, as well as from "post-marketing studies that support continuation of Medicare coverage," the firm said in a statement, adding that it expects the delayed contracted cases to spill over into 2018.
In November, the company had said it was targeting the lower end of a 55 to 75 percent year-over-year growth range in products-and-services revenues due to effects of recent hurricanes as well as preauthorization requirements for molecular testing recently introduced by certain US payors that it believed could delay test order processing. The company signed payor contracts during Q3 to bring the total number of payors covering ConfirmMDx and SelectMDx to 62 and 15, respectively.
MDxHealth said today that total annual revenues, including Exact Sciences' one-time buy-out of MDxHealth's colorectal patients for $15 million, is expected to grow 32 percent to 37 percent compared to 2016.
"Although we are disappointed with these preliminary Q4 results, we remain confident that the fundamentals of our company are in place for healthy future growth and bottom line results," said Jan Groen, CEO of MDxHealth, who further noted that firm has a growing position in urological diagnostics in the US with both ConfirmMDx and its urine-based SelectMDx prostate cancer test, as well as a strong growth position in Europe.